Does a Texas errand-running or personal-shopping business have to collect sales tax on the items it picks up or buys for customers?

Plain-English summary

The Comptroller's office responded to a proprietor of an errand service who asked how sales tax applies to the business. As described, the taxpayer is paid a fee plus mileage to run errands for customers, and any items picked up are paid for by the customer rather than marked up by the errand runner.

The ruling draws a line between two different kinds of errands:

• Pure pickup and delivery. If a customer has already ordered a taxable item from their own supplier and simply hires the errand service to pick it up and deliver it, the errand service's fee is not taxable — it is a transportation or delivery service. The errand runner pays for the item (including the tax already due on it), the customer reimburses the item cost, the tax, and the service fee, and the errand runner is still responsible for tax on any of their own materials used to provide the service.
• Personal shopping / buying on the customer's behalf. If the customer instead asks the errand service to go purchase a taxable item for them, without the customer arranging the purchase through their own supplier, the errand service may buy that item tax-free using a resale certificate. But in that scenario, the errand service must collect sales tax on the item's selling price, on its fee for securing the item, and on any transportation or delivery charge — and must hold a Texas sales tax permit to do so.

What this means for you

Errand and personal-shopping service owners

Whether you owe sales tax turns on who is really doing the "buying." If your role is limited to fetching and delivering something the customer already bought, your fee is untaxed and you don't need to collect tax on it. If your role is to go out and purchase the item yourself for the customer, you're acting more like a reseller: you can buy tax-free with a resale certificate, but you then need a sales tax permit and must charge tax on the item price, your fee, and any delivery charge.

Accountants and tax professionals

This letter is fact-specific and turns entirely on the mechanics of the transaction — who initiates and pays for the underlying purchase, and whether the errand runner marks up the item. It does not cite a statute or rule by number, so any advice to a similarly situated client should be checked against current Comptroller guidance (e.g., 34 Tex. Admin. Code Rule 3.286 on seller's and purchaser's responsibilities, and Rule 3.303 or similar transportation/delivery-charge rules), since this letter predates and does not itself reference those provisions.

Common questions

Q: I just pick up and deliver items my customers already ordered. Do I owe sales tax on my fee?
A: No. According to this letter, if the customer has already ordered a taxable item from their supplier and hires you only to pick it up and deliver it, your delivery fee is not taxable. The customer reimburses you for the item, the tax on the item, and your service fee.

Q: I go shopping and buy items for my customers myself. What changes?
A: In that case you may purchase the item tax-free with a resale certificate, but you must then collect sales tax on the item's selling price, your fee for securing it, and any transportation or delivery charge — and you need a Texas sales tax permit to do so.

Q: Does this ruling cite any statutes or regulations?
A: No. The original letter does not cite any specific Tax Code section or Comptroller rule; it simply applies general sales-and-use-tax principles to the facts described by the taxpayer.

Q: Can I rely on this letter for my own errand business?
A: This letter was issued to a specific taxpayer based on the facts they described, and the Comptroller notes that its opinion could change with different facts. It illustrates how the agency reasons about errand/personal-shopping services but is not a substitute for your own ruling request or professional advice.

Citations and references

No statutes or rules are cited in this letter.

Source

• STAR search: https://star.comptroller.texas.gov/search?doc_type_code=L&tax_type_code=SST
• Opinion: https://star.comptroller.texas.gov/view/9303L1224B01

Original ruling text

March 1, 1993

Dear **:

Thank you for your letter of January 28, 1993, concerning your tax
responsibilities as proprietor of an errand service.

As I understand it, you are paid a fee plus mileage to run errands for
your customers. Any items you pick up will be paid for by your customer.
You will not be marking up the price of the goods purchased by your
customer.

An errand service is not taxable if you are providing a transportation or
delivery service. For example, if your customer has ordered a taxable
item from their supplier and requests your services to pick up and deliver
the item, no tax is due on your service. You should pay for the item and
the included tax. Your customer will reimburse you for the item and tax
and pay a fee for your service under this transaction. You are responsible
for paying tax on any materials you purchase to provide this service.

On the other hand, if your customers request your services to purchase a
taxable item for them and the customer does not arrange for the purchase
through their suppliers, you may issue a resale certificate to the seller
and purchase the item tax free. You are then required to collect sales
tax on both the selling price of the item and your fee for securing the
item and any transportation or delivery charges. If this best describes
your errand service, you will be required to obtain a sales tax permit.

This opinion is based on the facts presented. If there are any additional
or different facts, the opinion may change.

If you have any questions or need additional information, you may call
toll free 1-800-531-5441, ext. 50037 or the regular Austin number is
512-475-0037. You also may write to Tax Administration Division.

Sincerely,

Lindey Osborne
Tax Administration Division